The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1887-12-08


knew Harper was bank oficer and that the
agreement was made in the once OF the bank
The first call for money was made in the sum
mer OF 1886. Don't remember the amount Was
made payable TO witness by check on the FL
deity made payable 10 witness insead ofhis firm
because Harper preferred II so. Had no inter
est In their wheat transactions save as q broker
The purchases OF wheat were not made in the
name Of Harper but Wiltshire, Eclxert & Co.
Never tried TO negotiate n loan in Cleveland.
Have 100 shares Of Fidelity stock standing in my
name. Borrowed money TO pay for the stock.
Afterward there was transferred TO
my name some 400 or 800 shares OF
stock by Harper TO borrow money on to lquidate
indebtedness arising out OF the wheat purchnse.
Witness received eight promissory notes OF
$4,000 each, from u. v. Lewis payable
Of different times without interest. This
money went TO Chicago The notes
were payable TO witness, but went in 10
the wheat deal by agreement between Lewis,
Harper and wiltshire Witness owed Harper
money prior to the wheat deal, and decided
property on Walnut Hills 10 secure aloan The
aggregate OF the checks drawn on the First Ma
tional Bank OF this city BY witness and depos-
tied with Harper was a little less than $S0),0Oo,
and on the Merchants National Bank about
s95o0O. The aggregate OF the amount drawn on
tho Fidelity was $4,000. January 81, 1887.
wiltshire drew check for Wiltshire. EclSert &
Co, for 1880 on the First National Bank. On
being asked the amount OF their deposit there
answered that thor accounts varied so much
could not say Did not have balance OF $4,000.
Drew the check knowing they hsf no such
deposit there. Igave tho check 10 Harper, and
he held IL as a memorandum against me. These
checks were given with the understanding that
thcy were TO be taken care OF by Harper, he
knowing veryweiI that did not have that
amount OF money. Q. Well, then, explain az
these were all for tho debts OF Harper as an in
diyiduaD why you were putting them in such a
sacred form as is evidenced by these Checks and
those checks drawn on another bank in which
you knew you had no money! A.. Simply be-
cause Harper suggested should do so in
order 10 facilitate the getting OF funds
to Chicago. Q. Then you were know
ingly acting in connection with Harper IN
tile obtaining OF this credits A. No, sir;
gave the checks TO Harper because thoughthe
was abundantly able to take care of them, and
he was holding them until such n time as the
deal wits ended; he said he would rather have
these checks for tho money than receipts.
merely looked on them rs receipts.
Ebenezer Scoheld, cashier OF the First Ma
tional Bank OF New York City, with which the
Fidelity had financial relations, was the next
witness on the stand. Mr.. Scofeld testified
that he made loan TO the Fidelity on certin-
Gates OF deposite dated April "a and % Of 800
900 each. They came TO his bank. he said ac-
companied by letter and paper collateral
The letter was dated April "a and 40
companied big block OF notes OF Riv-
erside Iron and Steel Company, Swifts
Iron and Steel Works, +. l.. Harper & Co, O.
Aultman & Co., Wiltshire, Eckert & Co, Narder
4 Co., Champion Machine Company, Lee Co.,
Wardor, Bushnell & Co., the total being some
$4,000. A letter was read from Harper asking
the First National Bank for o wider line OF
as. nj tQoatn ~
se0pO0l. The reply OF the bank was also read,
giving the rates OF discount and the rates OF In
terest on reserves A copy OF the Fidelity's
special and general accounts with Mr.. Scohelds
bank was offered in evidence, he verifying them.
@. Did you collect on any OF the Fidelity collat-
eraly A. Very much OF it. Q. What is the
amount OF your claim against the receiver OF
the Fidelity, A. About $4,000. Crossex-
animation by Judge Wilson was very brief and
only corroborative OF examination in chicf
w ]. Quinian. cashier OF the Chemical Ma
tional Bank OF New York, was the next wit
ness called to the stand Our bank loaned to
Fidelity on March Q. s3OoO0O on paper collateral
and certificate OF deposit for that amount
dated February IS signed by Cashier AInmi
Baldwin and Endorsed by f. L. Harper. Harper
never had q personal account in our bank. We
received collaterals OF the Fidelity Bank June
%, 81, 10000. All our advances to help the FL
bank doesn't owe us a cent to-day.
CINCINSATI Dec. 2.-Ebenezer Schoheld,
Cashier First National Bank OF New York City,
testified that L. l.. Harper had no personal ac.
count in his bank. The Fidelity had about
ss0s,0O0 to its credit February IL. Collected
about 500 600 on collnterals, Which was applied
TO the payment OF the loan.
General Eugene Powell, United States Bank
Examiner for the Southern District Of the
State OF Ohio, testified that he examined the
Fidelity bank March Ia, 1887, and found 1t in
good condition. The aggregate cash resources
were then S., 358,O1S5O mostly notes and dis
counts Examined the bank again on June 20,
1887. Soon after my arrival in the bank Har-
per and Hopkins came in; Baldwin was already
there. informed Cashier Baldwin that was
present for the purpose OF looking into their AZ
fairs, expecting TO make an examination. Har-
per must have overheard me he was close by,
and Immediately came up and asked me 10 step
aside q little from where Baldwin was
did So He asked me II was going
to mako an examination said yes
He told me he had written to the department.
at Washington. stating that they had in some
business ventures met with some losses, and he
had just received reply TO his letter, which he
said was very friendly. and which was to the
effect that they were justified in having time TO
recover from legitimate losses in business. He
showed me the letter stating that 1t ought to be
sufficient for me to pass examination. He said
he would give me the letter as authority for
such passage. looked the letter over and
told him in my opinion It was not sufficient,
and felt bound 10 look further into their af-
fairs. Then he asked me to telegraph the
Comptroller stating that the letter had been
shown to me, and that in my opinion It was
sufficient authority TO grant them further
time. l told him could not do II, but that 1
would consider any reply OF instructions he
received; without positive orders to the contrary
proposed 10 make the examination. / then
called fora statement from Cashier Baldwin as
TO the condition OF the bank. BY that time
quite number OF the directors and other on
GERS OF the bank had arrived, and considerable
interchange OF views as TO the situation was 60
ing on. Soon after that was looking over the
books. 1 had the book OF certificates OF deposit,
and noticed the last certificates OF deposit that
had been taken OF. They were three in mum
Der. There was one for $4,000. and two
for 100000, making 100000. The name OF
e. L. Harper was signed on the stubs for the
amount but the date was not given. Icalled out
Briggs Swift, President OF the bank, and called
his attention to the amounts on the stubs. He
locked ut them carefully ana said he had never
seen them before; that 1t was surprise to him.
Afterward j called Mr.. Harpcr's attention to
them and asked for an explanation, he turned
shrugged his shoulders, made me no reply and
walked on. When got the statement OF the
banks condition asked what the item Of cash
consisted of, and they made statement as to
what II was. II was evidences OF indebted
ness on the part OF Wiltshire. Eciyert & Co., j..
L. Harper & Co.. Swift's Iron and Steel Works
and J. w. Wiltshire & Co., tho aggregate OF
which was something over si,Ooo,00o. As It /
wasn't cash. it cut down the resources OF the
bank just TO that extent As result OF my in
vestigation notified the board Of directors as
sembed- among whom was Harper, that, in my
opinion, so much OF their resources had been
wasted considered their bank insolvent, and
felt It my duty at the close Of business that day
June 90, TO take possession OF the bank At the
close OF business accordingly took charge OF
the keys OF the safe.
Several OF the bank clerks and bookkeepers
were placed ON the stand, but their testimony
was OF a nature involving the technical details
OF the business OF the bank. Mr.. Ashbrook tes
titled that the day the bank closed +. L. Har-
per & Co. s account was overdrawn $500, and
Swifts Iron and Steel Works. $1,000
Broker Kershaw was called, and in his test-
fbul In,